You can buy anything online these days, and now it seems auto’s are also an option to purchase online. Soon Yongda, a luxury auto seller in Hong Kong, will provide their autos online via Tmall. But, the company is not only providing luxury cars, but cars that are considered to be less expensive and perfect for every income bracket out there.
This new venture is going to open up a whole new group of consumers to the auto seller. Yongda stated that online sales is the key innovation to company development, and it seems that they are charging forward with this idea.
How the Partnership will Work
Through partnering with Tmall, Yongda will have their inventory online for consumers throughout China to purchase. Those who buy a vehicle will be able to pick this up at their nearest Yongda branch. They will also be able to receive service and customer support from the same location. To start, Yongda is going to be offering 4,000 Chevrolet Epica’s. After this, the company is going to start offering more expensive models of vehicles, once they get their footing into the online shopping world.
Tmall is connecting the comapny with more than 3 million users who have used Alibaba online shopping platforms for their purchases. In addition, the partnership between an online shopping platform that is known for bringing cheap and quality goods to consumers coupled with an auto company known for its luxury branding is something that is unique in of itself. The general manager of the automobile sector for Alibaba, Wang Licheng stated:
“Alibaba is often considered [a platform for]ordinary people, while Yongda is known for its luxury, so the cooperation of the two will bring a revolutionary change, which was unimaginable in the past.”
With auto sales lagging in the past few quarters, many are wondering whether Yongda bringing itself to the online selling platforms is going to be the smartest decision out there. However, both companies feel as though this is a good decision that is going to bring more sales per quarter, as well as give Chinese consumers more options. In fact Wang Zhigao, the deputy board chairman for Yongda, stated:
He feels online sales will account for 15% of overall auto sales for the company
The partnership between the two is one that many are anticipating and encouraged to see occur. It will definitely benefit Alibaba, who will still be reigning as the king of online shopping.